In the recent past, residents of Crescent Oaks subdivision have opposed one idea - now dead - to put athletic fields on neighboring preserve land.
And they've learned that Pinellas County plans to build a water-blending plant close by.
So when someone from Progress Energy recently told them that big transmission lines humming with high voltage electricity could be coming their way, too, residents couldn't help but worry.
"It's like the IRS saying, 'We're here to help you,'" Crescent Oaks resident Bob Loos said.
Relax, a Progress Energy Florida official said. It's much too soon in the decision-making process to start worrying.
The utility will decide whether to build a nuclear power plant in Levy County this year. If the plant is built, up to 10 counties will need new transmission lines to carry high-voltage electricity from the plant to four new substations where the voltage of the electricity would be lowered before going out to communities.
One of those lines could be near the Crescent Oaks subdivision - or not.
"We are considering various options, and it's too early to know how any particular community may be affected," Progress Energy Florida spokeswoman Cherie Jacobs said.
At this point, Progress Energy Florida has yet to file a request with the Florida Public Service Commission to build the Levy County plant.
Still, the utility already is meeting with some homeowners to explain the project. In the next month or so, the utility plans to hold public information meetings in Pinellas, Pasco, Hillsborough, Hernando and Polk counties.
"Folks can come and ask questions and see what we're proposing," Jacobs said. "It will be the beginning of a lengthy public involvement process."
At the Crescent Oaks homeowner's association meeting in January, Gail Simpson, Progress Energy Florida's manager for public policy and constituent relations, showed residents a map with two corridors about 10 miles wide fanning out from the possible Levy County plant. New or upgraded transmission lines would be located somewhere within the wide corridor, she said.
One leg of the transmission line corridor travels southeast from the plant toward Leesburg. The other travels south from the plant, then turns east and continues along the Pasco/Hillsborough county line. In Pinellas, about 3 miles of the county's northeast corner is inside the southernmost corridor. And the general location of one possible substation is shown just outside Pinellas's northeast corner.
At the meetings, Progress Energy Florida plans to show residents that it has narrowed those corridors in some spots from 10 miles wide to 1 mile wide.
Existing transmission lines will be upgraded to carry a greater load as much as possible or new lines will be built in existing rights of way, Progress Energy Florida officials say. When existing lines are going in the right direction, they say, using them is the most cost-effective choice and causes less disturbance to the community and the environment.
The utility won't say where the existing transmission lines are in East Lake, but it's hardly a secret. One series of transmission towers runs north to south through Brooker Creek Preserve and crosses Keystone Road east of Crescent Oaks. Another cuts diagonally through the preserve, heading to the northwest near Ridgemoor.
As for new lines, Progress Energy's map shows a corridor cutting across the northeastern corner of Pinellas County.
At the Crescent Oaks meeting, Simpson couldn't tell homeowners what they most wanted to know: How close would any new transmission lines and a substation come to their neighborhood?
"When we got to specifics, she was very vague," Loos said.
The fact that the utility met with Crescent Oaks homeowners led Loos to suspect that transmission lines and/or the substation would be close. He said some power lines run in Brooker Creek Preserve near the eighth hole of the Crescent Oaks golf course.
It's just something else to worry about, he said.
"Are they keeping it close to the vest because they don't know," he wondered, "or because they don't want to start getting early opposition too soon?"
ITER Nuclear Fusion advances tokamak magnetic confinement, heating deuterium-tritium plasma with superconducting magnets, targeting net energy gain, tritium breeding, and steam-turbine power, while complementing laser inertial confinement milestones for grid-scale electricity and 2025 startup goals.
Key Points
ITER Nuclear Fusion is a tokamak project confining D-T plasma with magnets to achieve net energy gain and clean power.
✅ Tokamak magnetic confinement with high-temp superconducting coils
✅ Deuterium-tritium fuel cycle with on-site tritium breeding
✅ Targets net energy gain and grid-scale, low-carbon electricity
It sounds like the stuff of dreams: a virtually limitless source of energy that doesn’t produce greenhouse gases or radioactive waste. That’s the promise of nuclear fusion, often described as the holy grail of clean energy by proponents, which for decades has been nothing more than a fantasy due to insurmountable technical challenges. But things are heating up in what has turned into a race to create what amounts to an artificial sun here on Earth, one that can provide power for our kettles, cars and light bulbs.
Today’s nuclear power plants create electricity through nuclear fission, in which atoms are split, with next-gen nuclear power exploring smaller, cheaper, safer designs that remain distinct from fusion. Nuclear fusion however, involves combining atomic nuclei to release energy. It’s the same reaction that’s taking place at the Sun’s core. But overcoming the natural repulsion between atomic nuclei and maintaining the right conditions for fusion to occur isn’t straightforward. And doing so in a way that produces more energy than the reaction consumes has been beyond the grasp of the finest minds in physics for decades.
But perhaps not for much longer. Some major technical challenges have been overcome in the past few years and governments around the world have been pouring money into fusion power research as part of a broader green industrial revolution under way in several regions. There are also over 20 private ventures in the UK, US, Europe, China and Australia vying to be the first to make fusion energy production a reality.
“People are saying, ‘If it really is the ultimate solution, let’s find out whether it works or not,’” says Dr Tim Luce, head of science and operation at the International Thermonuclear Experimental Reactor (ITER), being built in southeast France. ITER is the biggest throw of the fusion dice yet.
Its $22bn (£15.9bn) build cost is being met by the governments of two-thirds of the world’s population, including the EU, the US, China and Russia, at a time when Europe is losing nuclear power and needs energy, and when it’s fired up in 2025 it’ll be the world’s largest fusion reactor. If it works, ITER will transform fusion power from being the stuff of dreams into a viable energy source.
Constructing a nuclear fusion reactor ITER will be a tokamak reactor – thought to be the best hope for fusion power. Inside a tokamak, a gas, often a hydrogen isotope called deuterium, is subjected to intense heat and pressure, forcing electrons out of the atoms. This creates a plasma – a superheated, ionised gas – that has to be contained by intense magnetic fields.
The containment is vital, as no material on Earth could withstand the intense heat (100,000,000°C and above) that the plasma has to reach so that fusion can begin. It’s close to 10 times the heat at the Sun’s core, and temperatures like that are needed in a tokamak because the gravitational pressure within the Sun can’t be recreated.
When atomic nuclei do start to fuse, vast amounts of energy are released. While the experimental reactors currently in operation release that energy as heat, in a fusion reactor power plant, the heat would be used to produce steam that would drive turbines to generate electricity, even as some envision nuclear beyond electricity for industrial heat and fuels.
Tokamaks aren’t the only fusion reactors being tried. Another type of reactor uses lasers to heat and compress a hydrogen fuel to initiate fusion. In August 2021, one such device at the National Ignition Facility, at the Lawrence Livermore National Laboratory in California, generated 1.35 megajoules of energy. This record-breaking figure brings fusion power a step closer to net energy gain, but most hopes are still pinned on tokamak reactors rather than lasers.
In June 2021, China’s Experimental Advanced Superconducting Tokamak (EAST) reactor maintained a plasma for 101 seconds at 120,000,000°C. Before that, the record was 20 seconds. Ultimately, a fusion reactor would need to sustain the plasma indefinitely – or at least for eight-hour ‘pulses’ during periods of peak electricity demand.
A real game-changer for tokamaks has been the magnets used to produce the magnetic field. “We know how to make magnets that generate a very high magnetic field from copper or other kinds of metal, but you would pay a fortune for the electricity. It wouldn’t be a net energy gain from the plant,” says Luce.
One route for nuclear fusion is to use atoms of deuterium and tritium, both isotopes of hydrogen. They fuse under incredible heat and pressure, and the resulting products release energy as heat
The solution is to use high-temperature, superconducting magnets made from superconducting wire, or ‘tape’, that has no electrical resistance. These magnets can create intense magnetic fields and don’t lose energy as heat.
“High temperature superconductivity has been known about for 35 years. But the manufacturing capability to make tape in the lengths that would be required to make a reasonable fusion coil has just recently been developed,” says Luce. One of ITER’s magnets, the central solenoid, will produce a field of 13 tesla – 280,000 times Earth’s magnetic field.
The inner walls of ITER’s vacuum vessel, where the fusion will occur, will be lined with beryllium, a metal that won’t contaminate the plasma much if they touch. At the bottom is the divertor that will keep the temperature inside the reactor under control.
“The heat load on the divertor can be as large as in a rocket nozzle,” says Luce. “Rocket nozzles work because you can get into orbit within minutes and in space it’s really cold.” In a fusion reactor, a divertor would need to withstand this heat indefinitely and at ITER they’ll be testing one made out of tungsten.
Meanwhile, in the US, the National Spherical Torus Experiment – Upgrade (NSTX-U) fusion reactor will be fired up in the autumn of 2022, while efforts in advanced fission such as a mini-reactor design are also progressing. One of its priorities will be to see whether lining the reactor with lithium helps to keep the plasma stable.
Choosing a fuel Instead of just using deuterium as the fusion fuel, ITER will use deuterium mixed with tritium, another hydrogen isotope. The deuterium-tritium blend offers the best chance of getting significantly more power out than is put in. Proponents of fusion power say one reason the technology is safe is that the fuel needs to be constantly fed into the reactor to keep fusion happening, making a runaway reaction impossible.
Deuterium can be extracted from seawater, so there’s a virtually limitless supply of it. But only 20kg of tritium are thought to exist worldwide, so fusion power plants will have to produce it (ITER will develop technology to ‘breed’ tritium). While some radioactive waste will be produced in a fusion plant, it’ll have a lifetime of around 100 years, rather than the thousands of years from fission.
At the time of writing in September, researchers at the Joint European Torus (JET) fusion reactor in Oxfordshire were due to start their deuterium-tritium fusion reactions. “JET will help ITER prepare a choice of machine parameters to optimise the fusion power,” says Dr Joelle Mailloux, one of the scientific programme leaders at JET. These parameters will include finding the best combination of deuterium and tritium, and establishing how the current is increased in the magnets before fusion starts.
The groundwork laid down at JET should accelerate ITER’s efforts to accomplish net energy gain. ITER will produce ‘first plasma’ in December 2025 and be cranked up to full power over the following decade. Its plasma temperature will reach 150,000,000°C and its target is to produce 500 megawatts of fusion power for every 50 megawatts of input heating power.
“If ITER is successful, it’ll eliminate most, if not all, doubts about the science and liberate money for technology development,” says Luce. That technology development will be demonstration fusion power plants that actually produce electricity, where advanced reactors can build on decades of expertise. “ITER is opening the door and saying, yeah, this works – the science is there.”
Ontario Electricity Policy debates rates, subsidies, renewables, nuclear baseload, and Quebec hydro imports, highlighting grid transmission limits, community consultation, conservation, and the province's energy mix after cancelled wind projects and rising costs to taxpayers.
Key Points
Ontario Electricity Policy guides rates, generation, grid planning, subsidies and imports for reliable, low-cost power.
✅ Focuses on rates, subsidies, and consumer affordability
✅ Balances nuclear baseload, renewables, and Quebec hydro imports
✅ Emphasizes grid transmission, consultation, and conservation
When Kathleen Wynne’s Liberals went down to defeat at the hands of Doug Ford and the Progressive Conservatives, Ontario electricity had a lot to do with it. That was in 2018. Now, two years later, Ford’s government has electricity issues of its own, including a new stance on wind power that continues to draw scrutiny.
Electricity is politically fraught in Ontario. It’s among the most expensive in Canada. And it has been mismanaged at least as far back as nuclear energy cost overruns starting in the 1980s.
From the start Wynne’s government was tainted by the gas plant scandal of her predecessor Dalton McGuinty and then she created her own with the botched roll-out of her green energy plan. And that helped Ford get elected promising to lower electricity prices. But, rates haven’t gone down under Ford while the cost to the government coffers for subsidizing them have soared - now costing $5.6 billion a year.
Meanwhile, Ford’s government has spent at least $230 million to tear up green energy contracts signed by the former Liberal government, including two wind-farm projects that were already mid-construction.
Lessons learned? In the final part of a three-part series, the six candidates vying to become the next leader of the Ontario Liberals discuss the province's electricity system, including the lessons learned from the prior Liberal government's botched attempts to fix it that led to widespread local opposition to a string of wind power projects, and whether they'd agree to import more hydroelectricity from Quebec.
“We had the right idea but didn’t stick the landing,” said Steven Del Duca, a member of the former Wynne government who lost his Vaughan-area seat in 2018, referring to its green-energy plan. “We need to make sure that we work more collaboratively with local communities to gain the buy-in needed to be successful in this regard.”
“Consultation and listening is key,” agreed Mitzie Hunter, who was education minister under Kathleen Wynne and in 2018 retained her seat in the legislature representing Scarborough-Guildwood. “We must seek input from community members about investments locally,” she said. “Inviting experts in to advise on major policy is also important to make evidence-based decisions."
Michael Coteau, MPP for Don Valley East and the third leadership candidate who was a member of the former government, called for “a new relationship of respect and collaboration with municipalities.”
He said there is an “important balance to be achieved between pursuing province wide objectives for green-energy initiatives and recognizing and reflecting unique local conditions and circumstances.”
Kate Graham, who has worked in municipal public service and has not held a provincial public office, said that experts and local communities are best placed to shape decisions in the sector.
In the final part of a three-part series, Ontario's Liberal leadership contenders discuss electricity, lessons learned from the bungled rollout of previous Liberal green policy, and whether to lean more on Quebec's hydroelectricity. “What's gotten Ontario in trouble in the past is when Queen's Park politicians are the ones micromanaging the electricity file,” she said.
“Community consultation is vitally important to the long-term success of infrastructure projects,” said Alvin Tedjo, a former policy adviser to Liberal ministers Brad Duguid and Glen Murray.
“Community voices must be heard and listened to when large-scale energy programs are going to be implemented,” agreed Brenda Hollingsworth, a personal injury lawyer making her first foray into politics.
Of the six candidates, only Coteau went beyond reflection to suggest a path forward, saying he would review the distribution of responsibilities between the province and municipalities, with the aim of empowering cities and towns.
Turn back to Quebec? Ford’s government has also turned away from a deal signed in 2016 to import hydroelectricity from Quebec.
Graham and Hunter both said they would consider increasing such imports. Hunter noted that the deal, which would displace domestic natural gas production, will lower the cost of electricity paid by Ontario ratepayers by a net total of $38 million from 2017 to 2023, according to the province’s fiscal watchdog.
“I am open to working with our neighbouring province,” Hunter said. “This is especially important as we seek to bring electricity to remote northern, on-reserve Indigenous communities.”
Tedjo said he has no issues with importing clean energy as long as it’s at a fair price.
Hollingsworth and Coteau both said they would withhold judgment until they could see the province’s capacity status in 2022.
“In evaluating the case for increasing importation of water power from Quebec, we must realistically assess the limitations of the existing transmission system and the cost and time required to scale up transmission infrastructure, among other factors,” Coteau said.
Del Duca also took a wait-and-see approach. “This will depend on our energy needs and energy mix,” he said. “I want to see our energy needs go down; we need more efficiency and better conservation to make that happen.”
What's the right energy mix? Nuclear energy currently accounts for about a third of Ontario’s energy-producing capacity, even as Canada explores zero-emissions electricity by 2035 pathways. But it actually supplies about 60 percent of Ontario’s electricity. That is because nuclear reactors are always on, producing so-called baseload power.
Hydroelectricity provides another 25 percent of supply, while oil and natural gas contribute 6 per cent and wind adds 7 percent. Both solar and biofuels account for less than one percent of Ontario’s energy supply. However, a much larger amount of solar is not counted in this tally, as it is used at or near the sites where it is generated, and never enters the transmission system.
Asked for their views on how large a role various sources of power should play in Ontario’s electricity mix in the future, the candidates largely backed the idea of renewable energy, but offered little specifics.
Graham repeated her statement that experts and communities should drive that conversation. Tedjo said all non-polluting technologies should play a role in Ontario’s energy mix, as provinces like Alberta demonstrate parallel growth in green energy and fossil fuels. Coteau said we need a mix of renewable-energy sources, without offering specifics.
“We also need to pursue carbon capture and sequestration, working in particular with our farming communities,” he added.
Sidi Mansour Wind Farm Tunisia will deliver 30 MW as an IPP, backed by UPC Renewables and CFM, under a STEG PPA, supporting 2030 renewable energy targets, grid connection, job creation, and CO2 emissions reduction.
Key Points
A 30 MW wind IPP by UPC and CFM in Sidi Mansour, supplying STEG and advancing Tunisia's 2030 renewable target.
✅ 30 MW capacity under STEG PPA, first wind IPP in Tunisia
✅ Co-developed by UPC Renewables and Climate Fund Managers
✅ Cuts CO2 by up to 56,645 t and creates about 100 jobs
UPC Renewables (UPC) and the Climate Fund Managers (CFM) have partnered to develop a 30 megawatt wind farm in Sidi Mansour, Tunisia, which, amid regional wind expansion efforts, will help the country meet its 30% renewable energy target by 2030.
Tunisia announced the launch of its solar energy plan in 2016, with projects like the 10 MW Tunisian solar park aiming to increase the role of renewables in its electricity generation mix ten-fold to 30%,
This Sidi Mansour Project will help Tunisia meet its goals, reducing its reliance on imported fossil fuels and, mirroring 90 MW Spanish wind build milestones, demonstrating to the world that it is serious about further development of renewable energy investment.
“Chams Enfidha”, the first solar energy station in Tunisia with a capacity of 1 megawatt and located in the Enfidha region. (Ministry of Energy, Mines and Energy Transition Facebook page)
This project will also be among the country’s first Independent Power Producers (IPP). CFM is acting as sponsor, financial adviser and co-developer on the project, in a landscape shaped by IRENA-ADFD funding in developing countries, while UPC will lead the development with its local team. The team will be in charge of permitting, grid connection, land securitisation, assessment of wind resources, contract procurement and engineering.
UPC was selected under the “Authorisation Scheme” tender for the project in 2016, similar to utility-scale developments like a 450 MW U.S. wind farm, and promptly signed a power purchase agreement with Société Tunisienne Electricité et du Gaz (STEG).
Brian Caffyn, chairman of UPC Group, said: “We can start the construction of the Sidi Mansour wind farm in 2020, helping stimulate the Tunisian economy, create local jobs and a social plan for local communities while respecting international environmental protection guidelines.”
Sebastian Surie, CFM’s regional head of Africa, added: “CFM is thrilled to partner with a leading wind developer in the Sidi Mansour Wind Project to assist Tunisia in meeting its renewable energy goals. As potentially the first Wind IPP in Tunisia, this Project will be a testament to how CI1’s full life-cycle financing solution can unlock investment in renewable energy in new markets, as seen in an Irish offshore wind project globally.”
The project will not only provide electricity, but also reduce CO2 emissions by up to 56,645 tonnes and create some 100 new jobs.
Wind turbine in El Haouaria, Tunisia, highlighting advances such as a huge offshore wind turbine that can power 18,000 homes. (Reuters)
Tunisia’s first power station, “Chams Enfidha,” inaugurated at the beginning of July, has a capacity of one megawatt, with an estimated cost of 3.3 million dinars ($1.18 million). The state invested 2.3 million dinars into the project ($820,000), with the remaining 1 million dinars ($360,000) provided by a private investor.
US-Canada Electricity Tariff Dispute intensifies as proposed tariffs spur Canadian threats to restrict hydroelectric exports, risking cross-border energy supply, grid reliability, higher electricity prices, and clean energy goals in the Northeast and Midwest.
Key Points
Trade clash over tariffs and hydroelectric exports that threatens power supply, prices, and grid reliability.
✅ Potential export curbs on Canadian hydro to US markets
✅ Risks: higher prices, strained grids, reduced clean energy
✅ Diplomacy urged to avoid retaliatory trade measures
In early February 2025, escalating trade tensions between the United States and Canada have raised concerns about the future of electricity exports from Canada to the U.S. The potential imposition of tariffs by the U.S. has prompted Canadian officials to consider retaliatory measures, including restricting electricity exports and pursuing high-level talks such as Ford's Washington meeting with federal counterparts.
Background of the Trade Dispute
In late November 2024, President-elect Donald Trump announced plans to impose a 25% tariff on all Canadian products, citing issues related to illegal immigration and drug trafficking. This proposal has been met with strong opposition from Canadian leaders, who view such tariffs as unjustified and detrimental to both economies, even as tariff threats boost support for Canadian energy projects among some stakeholders.
Canada's Response and Potential Retaliatory Measures
In response to the proposed tariffs, Canadian officials have discussed various countermeasures. Ontario Premier Doug Ford has threatened to cut electricity supplies to 1.5 million Americans and ban imports of U.S.-made beer and liquor. Other provinces, such as Quebec and Alberta, are also considering similar actions, though experts advise against cutting Quebec's energy exports due to reliability concerns.
Impact on U.S. Energy Supply
Canada is a significant supplier of electricity to the United States, particularly in regions like the Northeast and Midwest. A reduction or cessation of these exports could lead to energy shortages and increased electricity prices in affected U.S. states, with New York especially vulnerable according to regional assessments. For instance, Ontario exports substantial amounts of electricity to neighboring U.S. states, and any disruption could strain local energy grids.
Economic Implications
The imposition of tariffs and subsequent retaliatory measures could have far-reaching economic consequences. In Canada, industries such as agriculture, manufacturing, and energy could face significant challenges due to reduced access to the U.S. market, even as many Canadians support energy and mineral tariffs as leverage. Conversely, U.S. consumers might experience higher prices for goods and services that rely on Canadian imports, including energy products.
Environmental Considerations
Beyond economic factors, the trade dispute could impact environmental initiatives. Canada's hydroelectric power exports are a clean energy source that helps reduce carbon emissions in the U.S., where policymakers look to Canada for green power to meet targets. A reduction in these exports could lead to increased reliance on fossil fuels, potentially hindering environmental goals.
The escalating trade tensions between the United States and Canada, particularly concerning electricity exports, underscore the complex interdependence of the two nations. While the situation remains fluid, it highlights the need for diplomatic engagement to resolve disputes and maintain the stability of cross-border energy trade.
BC Hydro COVID-19 Relief offers electricity bill credits for laid-off workers and small business support, announced by Premier John Horgan, while FortisBC customers face deferrals and billing arrangements across Kelowna, Okanagan, and West Kootenay.
Key Points
BC Hydro COVID-19 Relief gives bill credits to laid-off residents; FortisBC offers deferrals and payment plans.
✅ Credit equals 3x average monthly bill for laid-off BC Hydro users
✅ Small businesses on BC Hydro get three months bill forgiveness
✅ FortisBC waives late fees, no disconnections, offers deferrals
On April 1, B.C. Premier John Horgan announced relief for BC Hydro customers who are facing bills after being laid-off during the economic shutdown due to the COVID-19 epidemic, while the utility also explores time-of-use rates to manage demand.
“Giving people relief on their power bills lets them focus on the essentials, while helping businesses and encouraging critical industry to keep operating,” he said.
BC Hydro residential customers in the province who have been laid off due to the pandemic will see a credit for three times their average monthly bill and, similar to Ontario's pandemic relief fund, small businesses forced to close will have power bills forgiven for three months.
But a large region of the province which gets its power from FortisBC will not have the same bail out.
FortisBC is the electricity provider to the tens of thousands who live and work in the Silmikameen Valley on Highway 3, the city of Kelowna, the Okanagan Valley south from Penticton, the Boundary region along the U.S. border. as well as West Kootenay communities.
“We want to make sure our customers are not worried about their FortisBC bill,” spokesperson Nicole Brown said.
FortisBC customers will still be on the hook for bills despite measures being taken to keep the lights on, even as winter disconnection pressures have been reported elsewhere.
Recent storm response by BC Hydro also highlights how crews have kept electricity service reliable during recent atypical events.
“We’ve adjusted our billing practices so we can do more,” she said. “We’ve discontinued our late fees for the time being and no customer will be disconnected for any financial reason.”
Brown said they will work one-on-one with customers to help find a billing arrangement that best suits their needs, aligning with disconnection moratoriums seen in other jurisdictions.
Those arrangement, she said, could include a “deferral, an equal payment plan or other billing options,” similar to FortisAlberta's precautions announced in Alberta.
Global News inquired with the Premier’s office why FortisBC customers were left out of Wednesday’s announcement and were deferred to the Ministry of Energy, Mines and Petroleum Resources.
The Ministry referred us back to FortisBC on the issue and offered no other comment, even as peak rates for self-isolating customers remained unchanged in parts of Ontario.
“We’re examining all options of how we can further help our customers and look forward to learning more about the program that BC Hydro is offering,” Brown said.
Disappointed FortisBC customers took to social media to vent about the disparity.
BC Hydro Deferred Regulatory Assets detail $5.5 billion in costs under rate-regulated accounting, to be recovered from ratepayers, highlighting B.C. Utilities Commission oversight, audit scrutiny, financial reporting impacts, and public utility governance.
Key Points
BC Hydro defers costs as regulatory assets to recover from ratepayers, influencing rates and financial reporting.
✅ $5.5B in deferred costs recorded as net regulatory assets
✅ Rate impacts tied to B.C. Utilities Commission oversight
✅ Auditor General to assess accounting and governance
Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future, as rates to rise by 3.75% over two years.
Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control electricity rates for customers.
"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."
She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.
"We think it's important for the people of B.C. and our members of the legislative assembly to better understand rate-regulated accounting in order to appreciate the impact it has on the bottom line for BC Hydro, for government as a whole, for ratepayers and for taxpayers, especially following a three per cent rate increase in April 2018," Bellringer said in a conference call with reporters.
Last June, the B.C. government launched a two-phase review of BC Hydro to find cost savings and look at the direction of the Crown utility, amid calls for change from advocates.
The review came shortly after a planned government rate freeze was overturned by the utilities commission, which resulted in a three per cent rate increase in April 2018.
A statement by BC Hydro and the government says a key objective of the review due this month is to enhance the regulatory oversight of the commission.
Bellringer's office will become BC Hydro's auditor next year — and will be assessing the impact of regulation on the utility's financial reporting.
"It is a complex area and confidence in the regulatory system is critical to protect the public interest," wrote Bellringer.
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